As the conflict in the Middle East continues, there is a strange divergence in perceptions about what may come next. On one hand, there are headlines that the Iranian Parliament has reached a “unanimous consensus” that Iran should move to close the Strait of Hormuz, whereas on the other, markets have reacted with a rather muted response, seemingly taking the perspective that the threats of closing the strait are empty.
It is worth noting that any attempt to move to limit traffic through the Strait of Hormuz needs to be made by Iran’s National Security Council.
Rather than solely adding another perspective on how events in the Persian Gulf may unfold from here, instead, we’ll be focusing mostly on the underlying facts of the situation.